In light of the surging inbound tourists, Japanese and foreign developers and hotel companies have stepped up construction, with names like Hyatt, Marriott, Nomura Real Estate Development and Mitsui Fodosan building new accommodations.
We have been increasingly receiving the inquiries from overseas investors about the properties in Kyoto for vacation rentals.
Generally speaking, lots of investments money to build the hotel and private lodging are flooding in Kyoto now from both inside and outside Japan and therefore the good properties with hotel license tend change hands very quickly.
There are very attractive investment opportunities for foreign investors in Kyoto properties.
I am going to discuss the opportunities of vacation rental in Kyoto today.
Let me start with the recap on the inbound tourism market in Japan, in particular, Kyoto.
The number of foreign visitors to Japan rose 19% to a record of nearly 29 million in 2017.
The government set the road to the target of 40 million by 2020 when Tokyo will host the Olympics.
Spending by foreign visitors rose 18% to ¥4.4 trillion ($40 billion).
Tourists have transformed the face of the nation’s cities, crowding into popular destinations such as the Ginza shopping area in Tokyo, temples in the ancient capital of Kyoto and ski
areas during the winter.
For example, the number of American visitors rose 11% in 2017 to 1.24 million which accounts for about 4% of the total.